🍋 Rothschild's Bold Move

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Good Morning! ChatGPT is all the rage, but it almost wasn’t released according to its cofounder. In an interview, he revealed OpenAI staff didn’t think the chatbot would be useful in its current form. For last Super Bowl, crypto commercials were all the rage. But this year there won’t be any crypto commercials, and the usual booze makers will take their place.

The housing market is finally showing signs of thawing - the average mortgage rate is coming down and more Americans are interested in buying. And a new report found the savings cushion most Americans built during the pandemic is finally running out.

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1. Story of the Day: Rothschild Going Private

Rothschild & Co. is taking a bold step in bucking the trend of going public. As the finance world watches investment banks and private equity firms rush to the stock market, Rothschild is opting to do the exact opposite - Rothschild plans to take its family-owned boutique bank private. Why? Because according to the Rothschild family, the stock market simply can't grasp their long-term vision.

As of yesterday, Rothschild had around a $4 billion market cap, despite bringing in close to $2 billion in revenue annually (the company’s stock soared 26% on the take-private news).

The lure of going public is tempting for boutique firms, offering founders the chance to cash out and provide staff with equity. But is it all it's cracked up to be? Finding a buyer in the finance industry can be a daunting task, as big firms don't always need to make a purchase, and private equity funds can be ruthless negotiators.

But Rothschild's situation is different. Despite its rich history, it operates as a mid-sized European stock with limited trading volume and sparse analyst attention. So while the idea of going public may be attractive, the road ahead is filled with obstacles.

2. Markets Rundown

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Stocks closed lower as higher rates rattle investors.

Movers & Shakers

• (+) Catalent ($CTLT) +20% because Danaher is considering buying the life sciences company.

• (–) Dell Technologies ($DELL) -3% after the technology company announced job cuts.

• (–) PayPal ($PYPL) -4% after a downgrade by Raymond James.

Private Dealmaking

• Apollo and Elliott Management invested a combined $900 million into Western Digital, a computer drive manufacturer

• PowerField, a Dutch solar park developer, raised $536 million

• ShiftMed, a Virginia-based healthcare staffing platform, raised $200 million

• Portside, a SaaS provider for business aviation, raised $50 million

• AtomicJar, an open source testing startup, raised $25 million

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3. Top Reads

• Stocks are surging with all this good news (Axios)

• Bed Bath & Beyond has nothing but itself to blame for impending bankruptcy (YF)

• ChatGPT jailbreak forces it to break its own rules (CNBC)

• Carlyle names former Goldman exec as CEO (Reuters)

• Yellen: “You don’t have a recession” with unemployment at 50-year low (Fox)

• Washington turns hostile on crypto (Axios)

• 35% of millionaires say retirement will ‘take a miracle’ (CNBC)

• FTX to politicians: “Give back our donations or we’ll sue you” (CNN)

• How a hot U.S. jobs report moved the goalposts on interest rate expectations (MW)

• Bed Bath & Beyond tries to raise funds as bankruptcy looms (Axios)

4. Book of the Day: Mind Reader

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What did your boss mean in that email? Is your mechanic stretching the truth? Whether you’re engaged in a casual conversation or a high-stakes negotiation, it’s critical to understand the subtext of a situation.

But with so much interaction happening on screens—via email, texts, or video chat—we are losing the ability to interpret expressions and cues.

Furthermore, since many are now savvy about the meaning of body language, it’s become even harder to discern someone’s true thoughts or intentions.

A leading lie-detection expert who instructs the FBI and other security agencies, noted psychotherapist David Lieberman, PhD, takes “people reading” to a whole new level.

Drawing on the latest research in psycholinguistics—the cues embedded in spoken and written speech—he shows you how to apply his cutting-edge methods to countless everyday situations.

“By paying close attention to not only what people say but also to how they say it, you can figure out what’s really going on inside their head.”

5. Short Squeez Picks

• The sunk cost fallacy

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• Why FOMO is the worst financial trait

• Generate momentum with 1% thinking

• 10 powerful websites to boost productivity

6. Daily Visual: Where's the beef?

YoY change in Tyson Foods’ meat prices

_{Source: Axios}

7. Daily Acumen: Future Tech (1 of 5)

Artificial Intelligence

Computational systems and software that adapt with the use of data have the potential to tackle complex issues, streamline knowledge work, and speed up the integration of technology into all economic sectors.

The utilization of Neural Networks is expected to have a greater impact than the advent of the internet and generate trillions of dollars in value.

As these systems expand, they will demand unparalleled computational power and AI-dedicated hardware will dominate the next generation of cloud data centers used to train and operate AI models.

The benefits for end-users are evident: a widespread use of AI-powered intelligent devices that will revolutionize the way they work, play, and spend.

The integration of artificial intelligence is poised to transform every industry, have a major impact on all businesses, and drive innovation across all platforms.

8. Job Board

• Goldman Sachs - Senior Vice President - Asset & Wealth Management - New York, NY

• Bank of America - Hedge Funds Director, Global Markets Credit - New York, NY

• Citi - Cash Investment Trader - New York, NY

• Fifth Third Bank - Executive Director - Real Estate Investment Banking - New York, NY

• Bloomberg - Senior Financial Analyst - New York, NY

• Morgan Stanley - Vice President - Structured Investments & Solutions Team - New York, NY

9. Memes of the Day

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